HOCHTIEF subsidiary Leighton sells parts of Australian iron ore busi
- Activities for BHP Billiton transferred to client
- Projects with selling price of some EUR 512 million
- Profit after tax for Leighton of some EUR 118.5 million
- Remaining Australian mining activities unaffected
- Contract mining continues to be part of Leighton's core business
- HOCHTIEF raises guidance as a result
HOCHTIEF subsidiary Leighton has sold parts of its Australian iron ore business at a substantial profit. The company today disposed of several projects undertaken by its subsidiary HWE Mining in the Pilbara region to mining group BHP Billiton for the equivalent of EUR 512 million (AUD 705 million). Leighton generated a profit after tax of EUR 118.5 million (AUD 163 million) from the transaction. In light of this positive development at Leighton, HOCHTIEF is raising its prior guidance for fiscal 2011, which continues to depend on the size and outcome of the sale of interests at HOCHTIEF Concessions. Following the successful conclusion of this transaction, which we are expecting in the coming weeks, HOCHTIEF will therefore specify its guidance in more precise detail.
The sale of the HWE Mining business activities, which had been announced in early August 2011, accords with BHP Billiton's strategy of reintegrating back into the group activities at its own mines that have previously been outsourced. For Leighton, it was an opportunity to sell ongoing projects at an attractive price and reap an extraordinary book gain in the process. "The sale is a great success and goes with our strategy of selling mature projects when an offer is there," said Dr. Frank Stieler, Chairman of the HOCHTIEF Executive Board. This does not, however, represent a general change of strategy in the mining market: "Contract mining remains a highly profitable part of our subsidiary's core business. Our many other projects in Australia continue without any change and we are bidding there for new contracts just as we are in Southeast Asia, Mongolia, and South Africa."
Leighton Holdings Limited is the parent company of Australia's largest contracting and project development group, which includes subsidiaries Thiess, John Holland, Leighton Contractors, Leighton International, Leighton Asia, and Leighton Properties. Leighton Group companies offer a broad range of construction, mining, and operations and maintenance services to the infrastructure, property and resources markets, and often take a concession role. With over 40,000 employees, the Group's operations are spread all around the Asia-Pacific region on projects in Australia, New Zealand, Hong Kong, Macau, Indonesia, Malaysia, Singapore, the Philippines, Thailand, Vietnam, Laos, Cambodia, China, Mongolia, Taiwan, Sri Lanka, India and the Middle East.
Further information is available at www.leighton.com.au.
Forward-looking Statements: This document contains forward-looking statements. These statements reflect the current views, expectations and assumptions of the Executive Board of HOCHTIEF Aktiengesellschaft and are based on information currently available to the Executive Board of HOCHTIEF Aktiengesellschaft. Such statements involve risks and uncertainties and do not guarantee future results (such as profit before tax or consolidated net profit) or developments (such as with regard to possible future divestments, general business activities or business strategy). Actual results (such as profit before tax or consolidated net profit), dividends and other developments (such as with regard to possible future divestments, general business activities or business strategy) relating to HOCHTIEF Aktiengesellschaft and the HOCHTIEF Group may therefore differ materially from the expectations and assumptions described in such statements due to, among other things, changes in the general economic, sector and competitive environment, capital market developments, currency exchange rate fluctuations, changes in international and national laws and regulations, in particular with respect to tax laws and regulations, the conduct of other shareholders, and other factors. Aside from statutory publication obligations, HOCHTIEF Aktiengesellschaft does not assume any obligations to update any forwardlooking statements.
HOCHTIEF is one of the leading international providers of construction-related services. With more than 70,000 employees and a sales volume of EUR 20.16 billion in FY 2010, the company is represented in all the world's major markets. The Group's service offering in the fields of development, construction, services, concessions and operation covers the entire life cycle of infrastructure projects, real estate and facilities. In the USA, the biggest construction market in the world, HOCHTIEF is the No. 1 general builder via its subsidiary Turner and, with Group company Flatiron, ranks among the most important players in the field of transportation infrastructure construction. With its subsidiary Leighton (HOCHTIEF share around 53 percent), the Group is market leader in Australia. Because of its engagement for sustainability, HOCHTIEF has been listed in the Dow Jones Sustainability Indexes since 2006. Further information is available at www.hochtief.com/press.